A year after raising $30 million in a Series B funding round, Indonesia-based fintech startup Kredivo has secured an undisclosed amount of fresh funding from existing investors Telkomsel Mitra Inovasi (TMI), the venture arm of network provider Telkomsel, and MDI Ventures.
The investment in Kredivo comes as TMI received an additional $40 million from its parent company to fund new startups this year. It invests in young, promising companies, accelerating growth by providing access to Telkomsel’s ecosystem, assets, and expertise.
“Our objective is not only to provide a more flexible and feasible payment solution for the young professionals, but also to advance thousands of Indonesian retailers by providing alternative financial services that allow them to reach wider customer segment,” TMI CEO Andi Kristianto said, explaining the firm’s decision to top up in Kredivo.
MDI Ventures, currently the most active corporate venture capital in Indonesia, said Telkomsel’s investment into Kredivo is “a clear-cut win”.
Operated by fintech company FinAccel, Kredivo functions like a digital credit card, enabling consumers without a credit card to shop online on credit and pay later in instalments.
Less than 3 per cent of Indonesia’s population has access to credit cards, with the vast majority of online shoppers relying on bank transfer and cash on delivery.
Founded roughly two years ago, Kredivo says it has so far credit-scored 2 million Indonesians. It is now available on nearly all of the country’s top ten merchants, including Tokopedia, Shopee, Bukalapak and Lazada, and more than 200 merchants overall.
Kredivo, which counts 500 Startups, Alpha JWC Ventures, GMO Venture, Jungle Ventures, and Openspace Ventures among its Series A investors, had earlier said that it will look to expand its business in terms of product lines, as well as geographical presence, with Thailand and the Philippines its most likely expansion targets.
“We are excited to partner with one of the most pioneering companies in Indonesia’s digital economy and hope to collaborate meaningfully in the next few years to further our vision of improving financial services for the majority of urban Indonesians,” said FinAccel CEO Akshay Garg.
Before its Series A, Kredivo had raised an undisclosed sum in 2017 from Jungle Ventures and Openspace Ventures (then known as NSI Ventures). Prior to that, it had raised a seven-digit seed investment round in 2016 led by Jungle Ventures with participation from GMO Venture Partners, Alpha JWC Ventures, 500 Durians, and 500 Tuktuks.